Basics of Trading and Finance (Part 13) : What is CRYPTO
Intro
IntroAs a moderator of the Tron Fan Club community, I regularly write various tutorials on crypto blockchain and Tron related matters. The main purpose of these tutorials is to make our new users aware of these topics. In continuation of that I am writing tutorials on trading and finance. Hope you can easily learn some details of trading and finance through this tutorial series.
In previous two tutorials, I have talked about coin and token. Today I am going to talk about Crypto. Let’s get started.
Crypto, short for cryptocurrency is a digital or virtual currency that uses cryptography to secure and verify transactions as well as control the creation of new units. Crypto operates independently of a central bank. They are decentralized in most of cases. Basically they are managed by a network of computers rather than a single governing authority. This is the unique feature of it and they are like currency and have the features of trading & buying, selling.
The most well-known crypto is Bitcoin. It was created in 2009. There are now thousands of different cryptocurrencies available. Each of the cryptos have their own unique features and use cases. The most important and remarkable feature of cryptocurrency is its decentralization. Traditional currencies are managed by a central bank or government but cryptos are managed by a decentralized network of computers. This makes it resistant to censorship and tampering. No no central authority is here to control the currency. It will be controlled upon certain rules and regulations set by the system.
Crypto transactions are validated and recorded on a public ledger called a blockchain. The blockchain is a decentralized ledger that records all transactions on the network in a secure and transparent manner. Transactions on the blockchain cannot be altered or deleted. In this point of view, it is highly secure and tamper-proof way to track the ownership and transfer of digital assets like crypto. Crypto is often used as a means of payment or transaction on its respective network. Bitcoin is the most well-known crypto and operates on its own blockchain network. It can be used to make transactions and payments same as traditional currency. Even in some cases, Bitcoin is more suitable and accepted currency than many other traditional fiat currencies now days.
Cryptocurrency can also be used as a store of value like we know Bitcoin has a limited supply and a history of appreciating in value over time. Some people invest in crypto as a means of diversifying their portfolio and taking advantage of the potential for growth. Although crypto market is highly volatile still it is possible to make crypto backed by any government or central authorit. In recent years, crypto has become increasingly mainstream. Many businesses and individuals are adopting crypto as a means of payment and investment. Some companies have even started accepting crypto as payment for goods and services. Crypto offers a unique alternative to traditional currency.
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Nice to know about CRYPTO. Actually it was very important post for us. Thanks for sharing with us.
I also like decentralized system. For that you don’t need any bank. Thank you so much for sharing this informative post.
You have explained that crypto entails, and this is a basis of trading and finance.
Thanks for sharing with us 😊